Xilam Animation Posts the Best Stock Market Performance of the CAC All Tradable Index in France in 2016, rising more than 400%.
With an increase of 406%, the shares of Xilam Animation (Paris: XIL) posted the largest increase in the CAC All Tradable index in 2016, reaching a market capitalization of 44 million euros as at December 31 2016.
The market cap, which was very low up until mid-2016, did not reflect the upturn in financial fundamentals or the significant potential for development.
The corporate communication regarding the transformation of Xilam’s business model, that started last April, brought about this turnaround in the stock market price which, for now, is merely a recovery.
Xilam is a leading independent animation company in Europe, a pure-play provider of cartoons for children. It now has four production studios of which three are located in France. Xilam Animation employs 400 people who currently produce content for 200 half-hour programs. This record production volume perfectly reflects the technical and artistic level of know-how achieved by the company as well as the confidence of the major channels and digital platforms.
Xilam also bases its model on a unique 20-year heritage strategy of working almost exclusively on content created in-house. Xilam therefore has full control and ownership of a catalogue of strong brands that it exports worldwide: in 2015, international sales accounted for 50% of total sales and 68% of the catalogue.
In a rapidly changing market, powerful levers now foster Xilam’s strategy, making it possible to forecast a significant short- and long-term growth in catalogue sales.
This is due, one the one hand, to the rise of emerging markets, notably India and South-East Asia, where Xilam has already garnered significant market share. The group hopes to replicate this level of success in China owing, in particular, to the distribution contract signed at the end of 2016 with the Uyoung Media Group in China.
On the other hand, the rapid deployment of digital platforms enables a near-instantaneous worldwide distribution of the catalogue: this has notably resulted in exponential growth of the videos viewed and, consequently, in a new revenue stream that will account, as from 2016, for about 50% of catalogue income. For instance the consumption of Xilam content on YouTube reached more than 2.2 billion views last year, a 98% increase compared to 2015.
The new commercial policy established by the group during the past financial year (doubling the sales teams and strengthening the digital team) aims to increase these first positive results.
All these levers should further reveal the significance of the latent added value of the catalogue.
Turnover for 2016 will be published on 28 February 2017.